After parent and student contributions are subtracted from the budget, a financial aid package is developed by combining funds from various sources to meet any deficit. The loan portion of the package is based on a "unit loan" for each class each year, which is the amount each student must borrow before qualifying for a grant. In 2007-08 the unit loans ranged from $24,885 to $26,985. The amount increases for each class and each year as costs increase. All students first borrow from the federal subsidized loan program. All Medical College administered loans are subsidized, with no interest accruing during medical school. Interest rates range from 2-9% and there is a ten year repayment period and some residency deferments.  In fourth year an unsubsidized loan (with interest accruing during the school year) may be required, depending on school resources and student career goals.